Marketers Lure Older Customers Marketers Now Are Aiming Discount Service Packages At Senior Citizens, As Americans Over 55 Are Becoming More Active And Spending More Money.

April 21, 1986|By Robin Palley, Philadelphia Daily News

Welcome to the graying of America . . . and the business world`s scramble to target products and services to senior citizens -- as a group richer, healthier and more active than ever before.

These are customers noted for their willingness to spend on travel and leisure activities, health care, fitness, financial services, real estate, luxury cars, cosmetics and dozens of other consumer products.

About one-fifth of all Americans are 55 or older. By the year 2010, one- fourth of the U.S. population will be into their golden years. By 2050, this fastest-growing population segment is expected to account for a third of the nation`s population.

``We definitely have put on a full-court press to try to understand the needs of this older group, because it is growing numerically and also in purchasing power,`` said Tony Adams, director of marketing for Campbell Soup.

``Almost all the wealth in the country is in the hands of people over 50,`` said Dr. George Sternlieb, a professor of urban and regional planning at Rutgers University. ``Anyone younger owes what little cash he has to his credit card company.``

People who have turned 55 in the past few years have some economic advantages over their parents, explained Jeffrey Ostroff, who operates a consulting firm in Delaware that specializes in marketing to the over-55 consumer.

``These are people who have had the benefit of great education. They`ve more likely held professional positions and benefited from being part of both the Social Security and private pensions systems. Their houses had lower mortgage rates and are paid off, their children are grown, and they`ve accumulated assets.

Banking and financial services companies know this well. For example, Philadelphia National Bank is developing a package of services for senior citizens, said Jim Malott, vice president of marketing. It will include travel discounts and seminars on bank services.

A study by the U.S. League of Savings Institutions found that the median deposit of customers 65 and over is $16,530 at savings institutions and $50,180 at other financial institutions.

``These people account for the majority of deluxe travel,`` said Ellen Grosser, manager of Rosenbluth Travel in Philadelphia. ``They have the money, the leisure time, and the good health to be adventurous -- go to China, on an African safari, or on cruises.``

Some retailers have made a special effort to lure older customers. A local mall features 10 percent discounts in participating stores for senior citizens every Tuesday.

The mature market has an impact beyond its own spending: Many people are influential in the decisions of their elderly parents and their adult children. ``Reach the 55-year-old and you`ve reached three generations,`` Ostroff said.

Ford is designing cars to be more comfortable for older people, and Sears has set up its Mature Outlook club and magazine. Airlines have established special discount programs for the older traveler.

ARA Services and Marriott have opened life-care nursing facilities. Colonial Penn Group, whose headquarters are in Philadelphia, has earned much of its $1 billion in assets selling insurance to the elderly.

The food industry has discovered another facet of the mature market. Whether for biological or psychological reasons, older adults definitely have a sweet tooth.

``The over-55 set eats more ice cream per capita than any other age group,`` said Adams.

The special needs of older customers may require attention, too. In consumer goods, packaging has to be easy to open, portions small, print large enough for easy reading. Convenience counts, and home-delivered services rate highly.

But there are problems in isolating the older consumer as a marketing target, Ostroff pointed out.

``They want to be perceived as having slightly different needs, but don`t want to be stereotyped or viewed as separate from the rest of the population,`` he said. ``Someone 55 doesn`t think of himself or herself as old and doesn`t want to be called a senior citizen.``